FY 2008 - FY 2009 Final Goals Letter

This letter is the final goals letter for 2008/2009. Below is part of the letter. Please see the attached PDF for the entire letter.

January 7, 2008

The Honorable Michael Chertoff

Secretary of Homeland Security

245 Murray Lane

Washington, DC 20528

Dear Secretary Chertoff:

This letter transmits your agency's final small business contracting goals for FY 2008 and FY 2009. (See enclosure.) The Small Business Act (the Act) provides for establishment of government-wide goals for award of not less than 23% of the total value of Federal prime contracts to small businesses each fiscal year. Pursuant to the Act, the U.S. Small Business Administration (SBA) issued proposed agency goals on November 17, 2007. Seventeen agencies responded with counter-proposals that taken together would have yielded a government-wide goal for contract awards to small businesses significantly below the statutory requirement of 23%. The remaining agencies accepted the proposed goals without further discussion.

Please note that agencies' counter-proposals would have resulted in a government-wide goal of 22.8268%. In this regard, SBA found each of the justifications supporting the counter-proposal reasonable. However, it is also concluded that in order to ensure attainment of the statutory government-wide goal, it could only entertain counter proposals that were unique and compelling. For example, an agency that showed a direct impact on FY 2008 achievements because of agency-specific statutory mandates recieved more favorable consideration than an agency that predicted a decrease in small business eligible dollars because of environmental factors that affect all agencies [e.g. government-wide implementationof small business size recertification requirements]. The SBA ranked counter-proposals on their merit, and granted adjusted goals for four agencies.

The final goaling strategy for FY 2008 and FY 2009 is based on trend analysis, prior year goal achievement, and ultimate impact on the government-wide goal. Goal analysis was prepared by SBA and presented to the Small Business Procurement Advisory Council's (SBPAC) Goaling Executive Committe, an interdepartmental working group that includes the Office of Federal Procurement Policy, Procurement Advisory Committee members and Chief Acquisition Officers for review adn recommendation. As a result of these decisions, the government-wide statutory mandate of a goal of not less than 23% will be met.

Socio-economic prime contracting goals will remain at the statutory level, as discussed in our previuos letter. Because the Act does not set a statutory government-wide requirement for small business subcontracting participatio, in establishing subcontracting goals, SBA used the FY2006 small business subcontracting achievement of each agency as the FY 2008 and FY 2009 small business goals. Accordingly, goals for small disadvantaged business (SDB), women owned small business (WOSB), and service disabled veteran owned small business (SDVOSB) programs are set at 5%, 5%, and 3% respectively. With respect to the HUBZone Program, SBA used the statutory 3 percent prime contract requirement in setting the subcontracting goal.

It should be noted that agencies that are impasse in negotiating contracting goals may appeal the proposed goal to the Office of Federal Procurement Policy. Also, please note that in May 2008, SBA plans to review agencies' FY 2009 goals for prime and subcontracting programs, and negotiate adjustments as appropriate. It should be understood that in the four cases in which SBA adjusted prime contracting small business goals, such adjustment is applicable to FY 2008, and not, by extension, to FY 2009.

Beginning this year, SBA will release new Small Business Procurement Scorecards that will rate agencies' small business contracting program plans as of January, and small business accomplishments as of July. Thus, the first bi-annual scorecard will measure plans nade only, present FY 2008 goals, and reflect FY 2006 results. The second bi-annual scorecard will grade agency achievement in FY 2007, display FY 2008 goals, and measure progress made against plans during FY 2008. Separate guidance will be issued for the FY 2008, Small Business Procurement Scorecard, which will provide for a January 31, 2008, submission date for agencies.

Should you have any questions in these matters, please contact Mr. Arthur E. Collins, Jr., Director for Government Contracting, at (202) 205-7218 or arthur.collins@sba.gov.

Thank you for your continuing support of the small business community, and making substantive contracting opportunities available to it.